Moratorium on Bankruptcy in 2022: Consequences, Contradictions and Solutions

Abstract

The bankruptcy moratorium was first applied in Russia during the pandemic in 2020. Simultaneously with the introduction of the moratorium, the Government of the Russian Federation has applied additional measures to stimulate the support and development of enterprises of strategically important industries for the economy, the measures have proved its effectiveness. Due to the economic crisis caused by sanctions against Russia, the Russian Government re-imposed a moratorium on bankruptcy in 2022. The article analyzes the mechanism of application of the institution of a moratorium on bankruptcy in Russia and foreign countries, the features of its application. The consequences of the introduction of a moratorium outside the framework of bankruptcy procedures are indicated and analyzed, namely: within the framework of enforcement proceedings, with respect to the payment of dividends and profit distribution. The article presents judicial practice, positions and acts of the authorities regarding the subject composition, which is subject to the moratorium on bankruptcy. The author examines the points of view of theorists and practitioners about whose interests should be respected as a priority in bankruptcy procedures — creditors or debtors; the possible negative consequences for bona fide creditors caused by the moratorium on bankruptcy are analyzed. The paper reveals the opinion about dishonesty and possible abuse of the right by the participants of civil legal relations in the conditions of the moratorium. The statistics presented in the article regarding the initiated enforcement proceedings in the period from March to April 2022 affect the aspect of the stability of civil turnover, clearly demonstrates the consequences of the application of the moratorium. The author presents ways to resolve controversial issues with an indication of the positions of persons actively seeking to resolve the gaps that have arisen in practice after the introduction of a “total” moratorium on bankruptcy in 2022; the question of the possibility (or actual impossibility) of individuals to abandon the imposed moratorium is also raised. The article analyzes the importance of the institution of bankruptcy in a crisis and the presence of public interest in the introduction of a moratorium; the possibility of introducing a repeated moratorium on bankruptcy under sanctions is assessed too.